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House prices grew by 2.5% year-on-year in November, according to Nationwide's house price index, the same rate of growth recorded in October.

According to cityam.com, this is a sharp fall in growth from a year ago, when annual inflation stood at 4.4%. The average price for a home was £209,988, up from £204,947 in the same month last year.

Nationwide said the policy will only have a modest impact on demand, because in many parts of the UK first-time buyers are purchasing properties worth less than £125,000, which wa the level of the previous threshold for stamp duty.

However, in London, where first-time buyers will not pay stamp duty on the first £300,000 on purchases of up to £500,000, the average stamp duty paid has fallen from £13,102 to £9,778.